Naval Ravikant, a venture capitalist, funded a series of success stories, including Epinions and Technorati. He says his latest venture, called Hit Forge, represents the
next level in startup development: the movie studio model. "The Web is the most hit-driven business the world has ever seen," Ravikant says. "It's about milestone-based development, piloting concepts,
access to distribution ... the problem is finding that next hit." Hits keep the other businesses afloat while bringing investment to the next generations.
It's a high-risk potentially high-reward game. Will Incubator 2.0 turn into Incinerator 2.0? Hit Forge is not alone. Blogger founder Evan Williams, who sold his previous venture to Google has a new incubator called Obvious, which uses a similar concept. Since success is hard to gauge, diversifying your incubation business could be the way to go.